Universal Studio wants to move forward on collections in the bankruptcy of former surf brands licensee Liberated Brands.
Liberated, up until last year, was the licensee of Billabong, Quiksilver, Roxy, RVCA and other surf brands. It’s now in the midst of a wind down of its North American business.
A tough operating environment mixed with the company’s growth in an abbreviated period of time led to Liberated’s bankruptcy filing earlier this month.
Now, Universal CityWalk, where Liberated operated a Billabong store, aims to recoup on some of its losses. The company asked a judge on Thursday for permission to pursue legal remedies for an expired lease, according to a court filing.
Details of the request are sealed and it’s unclear how much Universal is owed. Liberated’s creditor list redacts confidential information.
The creditor list is a who’s who of the surf industry, with many of surf and skate’s biggest names owed money. That includes locals such as Frog House, Jacks Surfboards and Huntington Surf and Sport. There are also major chains including Macy’s and Tilly’s.
Liberated’s Bankruptcy
Liberated was the long-time licensee of Volcom and also owned Captain Fin. However, the company scaled overnight when it was tapped to be the U.S. and Canadian retail and e-commerce licensee for Quiksilver, Billabong, Roxy, RVCA, Honolua and Boardriders in late 2023.
It struck the deal after Authentic Brands Group completed its $1.3 billion purchase of the Boardriders group. That deal added the industry’s biggest heritage surf and skate brands to the brand management company’s fold.
The licenses piled on with additional deals going to Liberated for business in Australia, New Zealand, Thailand, Indonesia and Asia-Pacific.
Liberated’s payroll went from 638 to 1,480, according to court documents.
“Macroeconomic issues, including a rapid and dramatic rise in interest rates, persistent inflation, supply chain delays, a decline in customer demand well below the historical trendline, shifting consumer preferences and substantial fixed costs placed significant pressure on Liberated’s revenue and cost structure,” founder and CEO Todd Hymel said in court filings.
In all, 350 corporate jobs and 1,040 store jobs have been cut, with U.S. stores now in the process of liquidating.
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